With a vote of 15 to 4 with Rep. Edmund S. Villagomez, Covenant-Saipan, absent, the House approved the conference committee report that recommends the passage of Senate Bill 17-43’s latest version.
The adoption of the report, according to House legal counsel John Cool, is considered passage of the bill itself.
S.B. 17-43, which now goes to the governor, will allow retirees and other Retirement Fund’s beneficiaries “to maintain causes of action on behalf of their trust and retirement fund programs when the trustees refuse to bring such actions.”
The House discussion on the bill became heated.
Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan; House Floor Leader George N. Camacho, Ind.-Saipan; Reps. Fredrick P. Deleon Guerrero, Ind.-Saipan; and Francisco S. Dela Cruz, R-Saipan, did not want to act on the bill until they hear from the Retirement Fund trustees. But Speaker Eli D. Cabrera, R-Saipan, and the other members wanted it passed already.
A few retirees were in the gallery to express support for S.B. 17-43’s passage.
Roman T. Tudela said as a retiree, he wants to be able to file a lawsuit if he sees there’s a reason for doing it and if the Retirement Fund “is just lying idle.”
“I want to be able to do that and see other retirees to join in filing the lawsuit when it’s necessary especially if the board of trustees is not doing anything,” he added.
The Fund, he noted, was originally opposed to the lawsuit against Merrill Lynch filed by certain retirees.
The Fund has now joined the lawsuit.
“The big question is why only now?” Tudela asked. “There must be another reason why they joined.”
Joaquin Cruz, another retiree, said he wants to protect the money that he will be receiving soon. He said his benefits are at stake in the lawsuit against Merrill Lynch.
Representative Dela Cruz believes that it’s the board of trustees’ job to protect the Fund and the interest of the retirees.
If the trustees fail to uphold their fiduciary duty, he added, they should be fired or the board should be abolished.
He noted that the Fund has already joined the lawsuit against Merrill Lynch.
Ogumoro for her part said they need to hear more from the Fund.
Camacho said since the Fund has already joined the lawsuit, “the issue is now moot.”
But House Minority Leader Joseph P. Deleon Guerrero, R-Saipan, said it is a “policy call” to make sure that what happened now with the retirement program, won’t happen again in the future so it is important to pass the bill.
Rep. Froilan C. Tenorio, Covenant-Saipan, noted that House members who are on the conference committee recommended the passage of the bill. “So why not vote on it now?”
